04/11/2024

Nonprofit Tax Status Shouldn’t Hinder Your Efforts to Turn a Profit

Nondues revenue is necessary to better serve members

"We are a nonprofit organization, so we aren't supposed to make money."

This sentiment is commonly expressed by board members, committee chairs, or staff members who are passionate about continuing a financially unsustainable activity.

While the importance of an association’s tax status is notable, it does not eliminate the need to maintain a fiscally viable organization. The myth that the tax designation of our associations nullifies our ability to be profitable needs to be dispelled. A pivotal duty of nonprofit leaders is to properly incorporate business models that generate sufficient financial resources for their organization to be viable for the foreseeable future.

Please select this link to read the complete article from ASAE’s Center for Association Leadership.